Supply and Demand QUIZ

As prices rise, alternatives are found

When quanity demanded and quanity supplied are equal

Quanity demanded is more than quanity supplied

Demand not very sensitive to a chang in price - Like Gas !!!!!!!!!!

Demand is very sensitive to a change in price

A graph that shows demand based on prise

The higher the price, the more that will be produced

How consumers react to a change in price

When prices is lower, consumers will buy more

Minimum price for a good

Costs that rise or fall depending on the quantity produced

4 FACTORS LEADING TO A CHANGE IN DEMAND

A graph that shows supply based on price

When quanity demanded is not equal to quantity supplied

Tax on production or sale of a good

Desire to own something and the ability to pay for it !!!!

The additional cost of producing one more unit

Government payment that supports a business or market

Fixed and variable cost added together

Cost that dosen't change no matter how much is produced

Quantity supplied is more tha quantity demanded

the amount of goods available

Maximum price that can be charged for a good